The problem comes when you use the money form the loan in a competitive market - e.g. real-estate. The availability of credit increases what people are able to

The problem comes when you use the money form the loan in a competitive market - e.g. real-estate. The availability of credit increases what people are able to pay, and hence the price. To buy a house, a loan becomes a requirement, which benefits the lenders, as their market grows. I should add a disclaimer: While this is a harmful consequence of loan availability, I wouldn't conclude from it that credit is harmful in sum. E.g. higher house prices eventually increase the supply (there are exceptions, like if the supply is limited by some other factor, like land availability). But whatever the other effects of credit may be, empirically, it sure does look like it concentrates wealth.